Hawaii Real Estate Purchase Agreement
A written and signed Hawaii real estate purchase agreement protects parties involved in a sale. It establishes a mutual understanding and legally enforceable responsibilities when transferring real property ownership.
Legal Aspects
Parties should consider several important legal aspects of a Hawaii real estate purchase agreement.
Writing Requirement
The legal provisions include:
- Identification of the parties: This clearly states the legal names of the buyers and sellers involved in the agreement. Contact information such as addresses and phone numbers are also provided.
- Legal description of the property: The agreement must accurately describe the real estate being transferred. This includes the tax map key number, land area, building features, apartment unit number, if applicable, and complete address.
- Purchase price and terms: A detailed breakdown of the purchase price is provided, including the initial earnest money deposit, additional deposits, the remaining balance due at closing, and how funds will be delivered. Payment terms are outlined.
- Closing provisions: This covers the targeted closing date, location where closing will occur, proration calculations, closing costs allocation between buyer and seller, and other details to finalize the sale.
- Contingencies: Various contingencies protect the buyer’s interest, allowing them to potentially cancel the contract and obtain deposit refunds if not satisfied with inspections, financing approval, condo documents, and more. Specific timeframes must be defined.
- Possession date: The purchase agreement states the date and time when the buyer will take physical possession of the property upon closing.
- Signatures: Handwritten signatures with dates by buyers and sellers make the agreement legally binding. Real estate agents also sign.
Required Disclosures
Hawaii law mandates sellers of residential property fully and accurately disclose all material facts relating to the property. This section of a Hawaii real estate purchase agreement saves the buyer from defects that could substantially affect the property’s value. As such, the seller must provide a written disclosure six (6) months before or not later than 10 days after closing a real estate purchase.
The disclosures point to key issues with the property, including:
- Structural integrity: Any defects or repairs to the foundation, roof, walls, floors, ceiling, doors, windows, deck, patio, fences, or other structural elements. Disclose any past or present water intrusion, drainage or grading problems, cracks, shifting, or other issues that may compromise structural integrity.
- Pests: Any evidence of pest infestation, including termites, carpenter ants, or other wood-destroying organisms. Disclose any pest control reports, treatments, or repairs done.
- Legal issues: Any encroachments, easements, zoning violations, nonconforming uses, or other restrictions on the title or use of the property.
- Homeowners association: If part of a condo or planned unit development, the seller must provide governing documents, rules, fees, and special assessments.
- Other material facts: Any other information that may reasonably affect the value or desirability of the property.